Honorable Minister Mr. Abul Maal Abdul Muhit, Ministry of Finance, Government of People’s Republic of Bangladesh presented budget for fiscal year 2015-16 on 04 June 2015. The proposed budget for the fiscal year 2015-16 is bigger by Tk. 550 billion over that of the outgoing fiscal.
INCOME TAX SLAB FOR INDIVIDUAL TAXPAYERS & CORPORATE RATES APPLICABLE FOR 2015-16.
INDIVIDUAL TAX RATES AND INCOME SLABS:
|1st Tk.. 250,000||Nil|
|Next Tk. 400,000||10%|
|Next Tk. 500,000||15%|
|Next Tk. 6,00,000||20%|
|Next Tk. 30,00,000||25%|
|Amount over Tk. 47,50,000||30%|
|Any income of an individual being a non-resident foreigner||30%|
|Minimum Income tax payable by individual taxpayer:
Dhaka & Chittagong City Corporation : Tk. 5,000
Other City Corporation : Tk. 4,000
Other areas : Tk. 3,000
INDIVIDUAL TAX FREE INCOME THRESHOLD:
|Type of Taxpayers||Tax free Income Limit|
|Last Year||This Year|
|Women and 65 above aged taxpayers||275,000||300,000|
|Liberation war wounded gazeted freedom fighters||400,000||425,000|
SURCHARGE FOR INDIVIDUAL TAXPAYER BASED ON NET WEALTH:
More than 2.25 crore but not more than 10 crore – 10%
More than 10 crore but not more than 20 crore – 15%
More than 20 crore but not more than 30 crore – 20%
More than 30 crore – 25%
Minimum surcharge payable is Tk. 3,000.-
CORPORATE TAX RATE- 1
|Publicly Traded Company||27.50%||25%|
|Publicly traded Co. declaring at least 30% dividend||24.75%||25%|
|Publicly traded Co. declaring less than 10% dividend||35%||25%|
|Non-publicly traded company||35%||35%|
|Bank, Insurance & Financial Institute:
Listed & 4th Generation Banks and FIs
CORPORATE TAX RATE- 2
|Cigarette: Non Publicly Traded
|Cellular Phone: Non Publicly Traded
|Minimum Tax payable on gross turnover||0.30%||0.30%
(0.10% in first three years)
UNIFORM INCOME YEAR: 1) Calendar year shall be the income year for bank, insurance and financial institutions.
2) Financial year i.e July-June shall be income year for all other taxpayers.
3) This new provision shall be applicable from 1st July 2016.
EMPLOYEE TAX: 1) Basic salary, bonus and festival allowances are to be taxed similarly for all Government and private sector employees; [SRO No- 198/2015, date 30 June 2015]
2) Tax free cash medical allowance – 10% of basic salary or Taka 1 lakh 20 thousand, whichever is lower.
3) Cash house rent allowance, 50% of basic or Tk. 25,000 per month (whichever is lower) shall be tax exempted.
4) 5% national income or Taka 60,000 which ever is higher for use of vehicle provided by employer
5) Gratuity is to be tax free up to 2 crore and Taka 50 lakh.
6) Worker’s Participation Fund payments received by workers as defined in Section 2(65) of the Labour act 2006 be exempted from tax; WPPF receipts by officers shall be fully taxable.
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